Dear Alberta Beer Drinkers

Dear Alberta Beer Drinkers

To the Beer Drinkers of Alberta,

In the late afternoon on Thursday, February 27th, the Alberta Government released new markup schedules that increased the tax on Big Rock’s beer by 22% ($0.05/can), reduced the growth horizon for Alberta craft brewers by 55% (180,000hl down from 400,000hl), and went in effect at midnight the same day. Decades of visionary partnership and investment with successive Alberta governments on defining a clear path for Alberta craft beer manufacturers to grow – particularly Big Rock, Alberta’s oldest craft brewery – undone, with 8 hours’ notice.

One of the most notable elements of the announced markup schedule changes was those not negatively affected: the very small craft producers, and the multinational brewers who dominate the Alberta marketplace. Big Rock is a founding member of the Alberta Small Brewers Association and has long advocated for fair and reasonable rates for Alberta’s craft brewers – so we were pleased to see the support for our fellow craft brewers continue; but the multinational brewers – manufacturers who control greater than 80% of Alberta’s beer sales – saw a 0% increase. In fact, those same global producers saw a 5% decrease in the top rate they pay to the Alberta Government for beverage alcohol’s fastest growing category: refreshment beverages (RTDs). That reduction in the top rate will drive decreased revenues for the Alberta Government by more than $4M, at a time when Alberta needs to make every dollar count.

The rationale for the 55% reduction of the volume “runway” provided by the Alberta Government was that the previous runway was “too big”. To offer some perspective, the large multinational brewers who operate in Alberta have annual production volumes of between 75 Million and 550 Million hectolitres; Alberta’s volume threshold to still qualify for “small” status until last Thursday was 0.4 Million; today it is 0.18 Million. This means that a brewer in Alberta who grows to be less than 0.03% the size of the world’s largest brewer, would pay the same beer tax as the world’s largest brewer.

Growth of Alberta brewers benefits our province in many more ways than simply through beer tax. We buy local, hire local, support our local communities through sponsorship of cultural and sporting events, and donate to local charitable organizations. Craft brewers across Canada supply 10% of the beer enjoyed in our nation but employ more than 60% of the beer professionals. Big Rock spends $10.6M on goods, services, and people in Alberta, and $32M across Canada. Being an Alberta-based business, Big Rock’s profits remain in our province; the multinational brewers all maintain headquarters outside not just Alberta, but Canada—which is where profits made in Alberta go. To put the $1.4M of additional tax the Alberta Government plans to charge Big Rock in 2025 into real numbers – that is the value of 23 jobs at our brewery.

The Alberta Government’s tax per can of beer is now just behind Alberta wheat and barley – the backbone of all Big Rock’s beers – as the highest cost input. Since 2015, the Alberta Government has increased Big Rock’s beer tax 90%, while the Federal government has increased their beer tax by 20%. Those rising taxes are in addition to the impact of US tariffs on the cost of beer, leaving a small producer like Big Rock very few options to drive better value to consumers at the very moment consumers are rallying behind a renewed enthusiasm to ‘Buy Local’. What this means for Alberta beer drinkers is higher prices. Driving up the cost of some of your favourite Big Rock brands – like Grasshopper, Traditional, and Alberta Genuine Draft—will make Big Rock less competitive in a market dominated by multi-nationals – and when competition goes down, prices only go one direction.

So to the Alberta beer drinkers, supporters, and fans, please choose local for your dinner pairing, bbq, celebrations and spring time patio sessions. Alberta shouldn’t just be the best place in Canada to open a craft brewery – it should be the best place to grow a craft brewery as well.

Sincerely,

Big Rock